Summary:
Since 1899, KommuneKredit has provided funding to municipalities and regions in Denmark by issuing bonds in the capital markets. That funding model was changed on 26 March 2025 and implemented in the Act on KommuneKredit (KommuneKredit-loven) with effect from 15 September 2026. The Danish State buys KommuneKredit’s bonds at interest rates corresponding to the State’s own funding costs. The new funding model has resulted in lower lending rates and lease payments since 1 April 2025 and, when fully phased in, the model is expected to create annual savings of up to DKK 1 billion for the Danish society, savings that will ultimately benefit Danish citizens and taxpayers.
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